Australian Government Has Expressed Its Position On Cryptocurrencies In New Regulations

Australian Treasurer Jim Chalmers said that his government will improve the way Australia’s system manages crypto assets and provide greater protections for consumers.

Three months after coming to power, the Australian Labor party has finally spoken out on how it will approach the crypto regulatory framework.

Accordingly, Jim Chalmers included “token mapping” into 12 recommendations presented in the Senate investigation report last year entitled “Australia as a Technology and Finance Center”. The report was warmly welcomed, with the entire industry anxiously waiting to see if the ALP government would accept crypto.

Looking forward to getting underway before the end of the year, token mapping will determine how crypto assets and related services will be managed and future regulatory decisions.

The Treasury Department will also implement a number of other recommendations in the near future, including a licensing framework for non-financial crypto asset service providers, appropriate requirements to protect custody consumer crypto assets and consider the corporate structure of a decentralized autonomous organization (DAO).

In a statement from Jim Chalmers along with many other officials said the Albanese-led government wants to rule the crypto sector “largely unregulated”.

“As it stands, the crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologies”

He said

The announcement also notes that over a million taxpayers have interacted with the crypto ecosystem since 2018, but “regulation is struggling to keep up and adapt.”

The politicians also commented that the previous Liberal-led government has been “awkward” towards crypto regulation through secondary service providers without understanding the essence of what is going on. be managed. The Albanese government is taking a more serious approach to figuring out what’s in the ecosystem and what risks need to be considered first.

Speaking to Cointelegraph, Piper Alderman partner Michael Bacina said the token mapping exercise is an important step forward in bridging the significant educational gap between regulators and policymakers.

“Australia punches above its weight in blockchain right now but we have seen regulatory uncertainty lead to businesses leaving Australia,” 

However, Dr Aaron Lane, a senior lecturer at the RMIT Blockchain Innovation Hub, believes that token mapping is a delaying tactic by the government.

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